Last Thursday evening the Bay St Louis City Council held a recessed meeting that was devoted almost entirely to the troubled state of the City’s finances. Audit report excerpts were read, sweeping proclamations regarding accountants being meek were declared and into nonsalient side subjects was the discussion frequently steered. And yet through it all the public still managed to learn a few things. I thought Geoff Belcher did a great job with his recap of the meeting for the Seacoast Echo so it is there we start:
Kolf said one of the reasons the city’s mandated audit is being held up is because the auditor is concerned that the utility rates aren’t high enough to pay everything and are a “going concern.”
If the city fails to raise rates, he said, that could make the bank trustees in charge of the bond nervous and they could legally require the city to pay the funds back immediately.
Falgout countered that the auditor is concerned about far more than the city’s utility budget.
So we getting this folks, we have the City Clerk blaming the Going Concern opinion on just the Utility Fund while the Auditor’s are telling the City Council they are concerned with the entirety of the City’s dismal financial situation. Kolf used that misconception in an attempt to strong arm the City Council into adopting the Mayor’s Utility rate hike, a proposal that according to Councilman Joey Boudin the council saw for the first time just before the start of the recessed meeting.
But there is more because the finger wagging from Clerk Kolf and City Attorney Rafferty was just beginning:
City attorney Donald Rafferty told the council he felt the proper thing to do would be to announce to the bank trustees that the city likely not be able to make the first payment on the refinanced bond.
This is too rich folks it really is and one has to wonder who Mr Rafferty’s client is at this point. You see folks it would be one thing if this was just a simple case of the pot trying to give the bums rush to the kettle but the level of dishonesty in the “advice” that was being dispensed last week to the council was simply stunning. The scare tactics worked too: Continue reading “My brother Darryl tries leading my other brother Darryl down the primrose path: A Going Concern Update”